What can be done if a builder stops work on the township

we are 300 buyers of an township ( under construction ) from last 5 years .our builder refused to work saying i dont have money if we go legally then if builder declare himself bankrupt or in solvent ?? then first bank have rights to recover the money Does bank will occupied our whole township in behalf of recovery of money from builder in which some of the flats is financed to customer by bank and some purchased it through cheque payment

Answers (4)

83 votes

As buyers, you have four options - (a) filing civil suit (b) or arbitration if the same has been provided for in he MoU or "Agreement to Sell" (c) or file consumer complaint (d) file insolvency petition.

Out of the 4, I am of the understanding that, as per my experience of recent handling of home buyers cases, filing of insolvency petition is the most effective remedy.

What is needed to be done immediately is to check if insolvency proceedings are already going against the Builder Company. If the proceedings are going on then we will have to immediately file our claim before the Interim Resolution Professional (IRP) as "financial creditors"

Only when we will have put our claim before the IRP, we will have any chance of getting our monies back. The remedy which the IRP can give is either completion of the project and then possession of flat or return of our monies with interest.

Although Banks may be having first charge, but our monies will come back to you in all certainty. Please feel free to contact for understanding it better

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68 votes

Dear sir,
There are several remedy available to you as per several judgments of Hon'ble Supreme Court. Rest I can suggest you after perusal of your documents.
Feel free to contact me for further assistance.

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316 votes

First right on the flat is always yours whether you have got the things financed or one time payment. If the builder has stopped the work and your possession date has also passed file a FIR against the builder for cheating,fraud and simultaneously approach to consumer court and RERA tribunal. You may approach us also for such action on your behalf at the earliest.

84 votes

First you guys need to register RWA to take any legal action against builder, so that your money and time can be save.....................................................................................

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